South Africa signs an MoU with the EU to advance mining, pharmacy, and green energy

Cyril Ramaphosa, President of South Africa, has signed a historic agreement on minerals and green energy with the European Union in a trilateral meeting ahead of the G20 summit.

South Africa has signed a memorandum of agreement with the European Union to spearhead green energy and process critical minerals. During a trilateral meeting held in Sandton, Johannesburg, Ramaphosa emphasized that the two entities have agreed to cooperate in critical minerals and green energy through an unprecedented Memorandum of Understanding (MoU).

South Africa signs an MoU with the EU to advance mining, pharmacy, and green energy

European Union-South Africa Partnership#G20SouthAfrica https://t.co/LkMKAecnL3

— Cyril Ramaphosa ???????? (@CyrilRamaphosa) November 20, 2025

President Ramaphosa met with Ursula von der Leyen, President of the European Commission, and António Costa, President of the European Council, at the summit. He asserted that shared goals, trust, and reliability fueled the existing and deepening partnership between South Africa and the EU. Additionally, he announced that South Africa has prioritized the transition to green energy to safeguard the livelihoods of those affected by the transition.

South Africa and the EU will jointly extract and process the minerals at the point of extraction. The agreement will thus allow his country to process the minerals domestically and support local employment. Ramaphosa said that the understanding would help South Africa move up the value chain of beneficiation in the green energy and critical mineral sectors. The news comes after Cryptopolitan reported that South Africa’s illicit gold network was booming.

The President explained that the two trade agreements would strengthen the trade and investment ties between the African country and the EU. He also mentioned that the agreement will lay the foundation for regulatory cooperation and identification of strategic projects in clean technology, green hydrogen, and critical minerals.

Ramaphosa emphasized that the agreement details the support for green infrastructure, local production of vaccines, and pharmaceutical supply chains. He mentioned that South Africa and the EU have successfully established and finalized a clean trade and investment partnership. The deal comes as the European Union implements diversification strategies for its supplies, moving away from monopolized sources that have caused disruptions.

EU announces a €750 million financing package for South Africa

Today, we are signing the first-ever Clean Trade and Investment Partnership.

It’s a new generation of trade agreement – and a blueprint for future ones.

We also step up cooperation on critical raw materials in ways that benefit us both ↓ https://t.co/hGGWU8X0fa

— Ursula von der Leyen (@vonderleyen) November 20, 2025

European Commission President Ursula von der Leyen commented on the agreement, stating that the EU is planning to invest €350 million to improve the transport and energy infrastructure in the African country. She added that the investment is part of Transnet’s decarbonisation strategy under the Just Energy Transition Partnership. She also acknowledged that the agreement was the first of its kind signed by the European Union.

She also explained that the EU will invest €330 million in a financing package for critical raw materials, clean hydrogen, and electric batteries. She also announced that the EU will invest €70 million in South Africa’s pharmaceutical industry for vaccine production.

The European Commission President explained that both Europe and South Africa need the inputs to power the green energy transition. She explained that the future of the two economies relies on a fair and reliable supply chain. She also said that the partnership will help South Africa expand its strategic industry.

Both sides defended multilateralism. The deal comes amid uncertainty over U.S. engagement in global forums. The deal also signals an intent to uphold collaborative, rules-based systems.

The news follows the EU’s announcement of its intention to establish a centralized authority responsible for developing and maintaining an inventory of critical minerals. The EU’s executive VP for industrial strategy, Stéphane Séjourné, claimed that the plans are intended to avoid the United States monopolizing the world’s critical minerals.

The VP told the Financial Times that the EU had become “collateral damage” in the trade wars between the U.S. and China. The meeting also precedes the G20 summit, which will be held in South Africa, marking the first time an African country has hosted the G20.